Argentina’s Grain Exports Surge by 32.3% in July 2024

Argentina’s grain and derivative exports generated revenue of $2.616 billion in July 2024.

This amount represents a 32.3% increase compared to June. It also shows a 35.8% increase compared to July 2023.

The Chamber of the Oil Industry of the Argentine Republic (Ciara) and the Cereal Exporters Center (CEC) released the data. These entities represent 50.1% of Argentina’s total exports.

In the first seven months of the year, revenue totaled $13.640 billion. This marks a 5.2% increase compared to the previous year.

The performance partly reflects the adoption of the “export dollar” reference value. This policy has been in effect since December 2023.

Additionally, international prices and climate effects influenced the soybean and corn harvests.

“Grain exports continue to operate with high levels of idle capacity,” they said. The soybean oil industry also faces permanent negative margins.

The sector’s main export product is soybean meal, accounting for 12% of the total. Corn follows with 11%, and soybean oil makes up 6.9%.

Several factors contributed to the significant increase in Argentina’s grain export revenue. Favorable international prices and the “export dollar” policy played crucial roles.

This policy aims to stabilize and boost export revenues. It sets a favorable exchange rate for exporters and has been effective since December 2023.

Climatic conditions have significantly affected the agricultural sector. Favorable weather patterns, influenced by El Niño, improved key crop harvests.

Soybeans and corn saw increased export volumes. However, the industry still faces challenges.

High levels of idle capacity and negative profit margins persist, particularly in the soybean oil sector.